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Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

11Sep

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Supreme Court

Landmark Judgment: Supreme Court Explains How to Calculate Compensation for a Child’s Death

The Supreme Court clarified that in claims under Section 166 of the MV Act, a notional income for a deceased child need not be limited to the figures in Schedule II (for Section 163-A claims). It reinstated the Tribunal's calculation, confirming no deduction for personal expenses is required in such cases. Facts Of The Case: The case originated from a motor accident involving a 10-year-old boy who was fatally struck by a bus owned by the Tamil Nadu State Transport Corporation while he was cycling to school. The parents of the deceased child filed a claim petition before the Motor Accidents Claims Tribunal. The Tribunal, acknowledging the undisputed negligence of the bus driver, awarded a total compensation of ₹8,55,000. This calculation was based on attributing a notional monthly...

Supreme Court Ruling: Family of US-Based Driver Wins Enhanced Compensation

The Supreme Court, applying the principles established in National Insurance Co. Ltd. v. Pranay Sethi, held that a self-employed person, even one working abroad, is entitled to an addition of 40% of their established income towards future prospects when computing compensation in motor accident claims. The Court enhanced the compensation by recalculating the loss of dependency and conventional heads as per the standardized formula mandated by the Constitution Bench. Facts Of The Case: The case arose from a motor accident that occurred on 31st August 2007 at approximately 3:00 a.m. at Nirmal Kutia Chowk, Karnal. The deceased, Rajinder Singh Mihnas, a 31-year-old U.S. national, was travelling in a car from Delhi to Hoshiarpur when it was struck by a rashly and negligently driven Swaraj Mazd...

Landmark Ruling: Supreme Court Explains How to Calculate “Just Compensation” for Accident Deaths

This Supreme Court judgment clarifies that allowances forming part of a deceased's salary, if used for family support, must be included in income computation for motor accident compensation. It applies established principles from Sarla Verma and Pranay Sethi to include future prospects and awards consortium as per Magma General Insurance, ensuring just compensation under the Motor Vehicles Act. Facts Of The Case: On February 16, 2009, Lokender Kumar died in a motor accident caused by the rash and negligent driving of a Santro car on the Sohna-Gurgaon Road. His widow and two minor children filed a claim petition before the Motor Accident Claims Tribunal in Gurgaon, seeking Rs. 25 lakhs in compensation. The Tribunal, considering his basic salary of Rs. 3,665 per month and applying a multip...